HDFC Ltd to sell 10% equity in HDFC Capital to Abu Dhabi Investment Authority
HDFC Capital is a wholly owned subsidiary of Housing Development Finance Corporation Ltd and is in the business of managing private equity funds focused on real estate sector in India.
PremiumHDFC Ltd has entered into binding agreements to sell 10% of share capital of HDFC Capital Advisors Ltd (HDFC Capital) to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for about ₹184 crore. ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital.
HDFC Capital is a wholly owned subsidiary of Housing Development Finance Corporation Ltd (HDFC Ltd) and is in the business of managing private equity funds focused on real estate sector in India. HDFC Capital also seeks to promote innovation and the adoption of new technologies within the real estate sector by investing in and partnering with technology companies.
The funds managed by HDFC Capital provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects including early-stage funding. In addition, the funds will also invest in technology companies(construction technology, fin-tech, clean-tech etc.) engaged in the affordable housing ecosystem.
Deepak Parekh, Chairman – HDFC Ltd, said, “Six years ago we set up HDFC Capital with a vision of progressing in sync with the government's ‘Housing For All’ goal by increasing the supply of affordable homes in India. Supported by marquee global investors like ADIA, the funds managed by HDFC Capital have grown to create one of the world’s largest private financing platforms for the development of affordable housing. This investment by ADIA will enable HDFC Capital to leverage ADIA’s global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform for global and local investors across multiple strategies and asset classes in the real estate and technology ecosystem."
Set up in 2016, HDFC Capital is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 & 3; and is aligned with the Government of India’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana - ‘Housing for All’ initiative. HDFC Capital manages an approximately $3 billion funding platform which has recently been rated as one of the world’s largest private finance platforms focused on development of affordable housing.
Earlier this month, India's largest private lender HDFC Bank announced that it is buying its biggest shareholder in a $40 billion deal, the country's biggest ever, creating a financial services titan to better tap rising demand for credit.
HDFC Bank's deal with housing finance firm HDFC Ltd, which owns about 21% of the lender, will build on its 68 million customers and expand its home loan portfolio significantly while also opening up the scope for larger loans.
HDFC and HDFC Bank shares were up 1.3% and 0.3% respectively in early trade.
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